TNAG-1847-FCO40-2622-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 16

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YOUR TELNO 925: FAC: HMS TAMAR.

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THE PRINCE OF WALES BUILDING WAS CONSTRUCTED BY HKG AT ITS OWN COST AS A RE-PROVISIONING ITEM IN RETURN FOR RELEASE OF THE VICTORIA BARRACKS. THERE ARE NO DIFFERENT ARRANGEMENTS FOR THIS BUILDING THAN FOR ANY OTHER BUILDING CONSTRUCTED UNDER THE REPROVISIONING TERMS OF THE DEFENCE COSTS AGREEMENT. WHEN MOD NO LONGER REQUIRE THE BUILDING FOR MILITARY PURPOSES IT IS TO BE RELEASED TO HKG AND NO COMPENSATION IS PAYABLE.

2. THE LAND ON WHICH THE BUILDING STANDS IS PART OF HMS TAMAR. THIS SITE IS NOT OWNED BY MOD. IT IS CROWN LAND ALLOCATED TO MILITARY USE. ONCE THAT USE ENDS THE MILITARY WILL RETURN THE LAND TO HKG WITHOUT PAYMENT TO OR FROM EITHER PARTY. THE ONLY CLAIM TO REIMBUR- SEMENT MOD HAD WAS FOR THEIR CONTRIBUTION TO BUILDINGS CONSTRUCTED SINCE 1975 USING DCA FUNDS, AS OPPOSED TO HKG REPROVISIONING FUNDS. THIS CLAIM IS TO BE DISCHARGED BY A LUMP SUM PAYMENT FROM HKG IN RESPECT OF ALL SUCH PROPERTY SO A SPECIFIC CLAIM SHOULD NOT ARISE IN RELATION TO HMS TAMAR.

3. YOU WILL RECALL THAT THE OPTION OF USING THE PRINCE OF WALES BUILDING AS THE FUTURE CONSULATE-GENERAL WAS CONSIDERED AND REJECTED IN 1985/86.

WILSON

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